Mid-Day Gold & Silver Market Report – 10/1/2014
Peter LaTona
10/1/2014 9:01:00 AM
CHINA AIMS FOR GOLD RESERVES OF 8,500 TONNES
According to China Gold Association President Song Xin, China is on its way to accumulating 8,500 tonnes of Gold, which would be the highest amount of any current central bank, including the U.S. Gold will help support the renminbi, the People’s Republic of China’s official currency, to becoming an international currency as “Gold forms the very material basis for modern fiat currencies,” Song notes in an opinion editorial. This coincides with a recent article by former Federal Reserve Chairman Alan Greenspan, “Why Beijing is Buying,” in which he points out that if China converted a small portion of their $4 trillion foreign exchange reserves into Gold, the Chinese currency would take on unexpected strength. He also commented that if the U.S. dollar or other fiat currencies were universally acceptable, time there would be no need for Gold, but the fact that central banks have been buying Gold since 2009 indicate this is not the case.
Increased economic weakness in Europe and geopolitical concerns in Ukraine are supporting Gold and Silver prices while the U.S. stock market is down more than 150 points. “The market is showing nervousness just over the last couple weeks as we’ve been having this choppiness, especially in smaller companies,” Exencial Wealth Advisors Chief Investment Officer Tim Courtney said in a phone interview from Oklahoma City. “Small caps have historically led the way down. This could be the beginning of a normal 10 percent correction.” Huntington Asset Advisors CIO Randy Bateman said, “You’ve got a whole bunch of geopolitical situations and you have concerns about economic weakness. We’ve always relied on the Fed priming the pump. This is the month the pump dries up so now people are focused on these other issues.”
At 1:30 p.m. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,216.60 Up $3.60
- Silver, $17.32 Up $0.19
- Platinum, $1,290.60 Down $11.90
- Palladium, $779.60 Up $4.50
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
